The British pound has rallied again during the trading session on Tuesday, after initially dropping against many other currencies. However, the New Zealand dollar was a bit of an outlier in the sense that the Sterling was never in any trouble against it. At this point, it looks as if the market is trying to form a flag over here as it is against the US dollar, Japanese yen, and so on. The British pound is pressing the $2.03 level against the New Zealand dollar, and it looks very likely to continue going forward.
The 50 day EMA is starting to race towards the previous action of the last couple of weeks, which looks a lot like a flag. The pole of the flag could send this market looking towards the $2.10 level, which is a large, round, psychologically significant figure. At this point, short-term dips continue to offer buying opportunities, and therefore I don’t to short this market. This is a market that should continue to show plenty of bullish price action, and value is something that people will take advantage of. The British pound continues this move higher based upon the fact that Brexit is eventually going to get solved, and things don’t look as tough between the EU in the UK as they once did. Unfortunately, most of the struggle is actually within the United Kingdom. All things being equal though, with Nigel Farage stepping to the side and refusing to challenge the Tories, this could give a bit more leverage to Boris Johnson to get the Brexit done finally. At this point, I don’t even think the market cares what happens, just that something happens as three years has been far too long for the circuits that has been Brexit through the UK Parliament and the European Union.
The 50 day EMA is starting to race towards the previous action of the last couple of weeks, which looks a lot like a flag. The pole of the flag could send this market looking towards the $2.10 level, which is a large, round, psychologically significant figure. At this point, short-term dips continue to offer buying opportunities, and therefore I don’t to short this market. This is a market that should continue to show plenty of bullish price action, and value is something that people will take advantage of. The British pound continues this move higher based upon the fact that Brexit is eventually going to get solved, and things don’t look as tough between the EU in the UK as they once did. Unfortunately, most of the struggle is actually within the United Kingdom. All things being equal though, with Nigel Farage stepping to the side and refusing to challenge the Tories, this could give a bit more leverage to Boris Johnson to get the Brexit done finally. At this point, I don’t even think the market cares what happens, just that something happens as three years has been far too long for the circuits that has been Brexit through the UK Parliament and the European Union.